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Pros
- No constraints on what seller can pay to assist buyer
- Buyer can negotiate interest and repayment schedule with seller
- Buyer can include personal property such as appliances or vehicles
in the purchase
- Loan processing fees and points eliminated
- No Primary Mortgage Insurance (PMI)
- No need for appraisal
- Various security documents may be used to secure the sale: mortgage,
deed of trust, or land sales contract
Cons
- Concerns with land sales contracts
- Concerns with properly registering deed of trust
- Buyer may be overpaying without appraisal
- Buyer may be unaware of severe physical deficiencies
- Buyers may get in over their head
Return to Financing
Information
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